Finance jobs 'strengthened by rate cut'

The Bank of England's decision to cut interest rates in response to the credit crunch has been welcomed by the financial sector, which may interest graduates considering a career in the industry.

The 0.25 per cent cut reduces the interest rate from 5.25 per cent to five per cent.

John Lacey, managing director of Longbridge Search & Selection, said that the reduction will "boost confidence" in the sector as many workers in the City were concerned about their jobs, adding that his organisation is "confident" that fewer jobs will be at risk.

"We're seeing a lot of churn, but people are still getting jobs in banking middle and back office. Britain can weather this storm, but to boost growth we'll need to see more action from King and co," he remarked

The decision to lower rates was made in response to worries about the effect of the credit crunch on Britain's property market and is the third consecutive interest rate reduction in the last five months.